The cloud era is here -- do you think your network is ready? As a network operator, you will need to deliver on-demand network services that are just as dynamic as the cloud services that now dominate network traffic. You face many challenges in making this happen.

But a new study from ACG Research shows you can achieve this quickly and profitably with advancements that are available now. Their analysis of the new Alcatel-Lucent Network Services Platform in a national network scenario showed you can cut service creation time, generate more revenue, and achieve significant ROI very quickly.

In the search for more knowledge about the incredible pace of innovation and change that is driving major network transformation by enterprises and service providers; it is always a good idea to review the postings of those on the front lines. This is why the recent blog by Marten Hauville, Principal Solutions Architect (ANZ) for cloud networking specialist Alcatel-Lucent’s Nuage Networks business unit and Co-Organizer of the Australian OpenStack User Group, caught my attention.

Hauville in his blog raises and answers a timely question, “What’s up with the data center network?”

There is hardly a business today that does not require high speed and high performance Internet connectivity. Let’s face it, quality network access is table stakes for running a successful business in an increasingly connected world where commerce is 24/7/365 and can originate or terminate from anywhere and over any device with a browser. As a result, ensuring good networking and communications for employees is a major priority for all businesses, but it is an especially daunting one for large enterprises due the volume and the accommodation of rapid change thanks to things like the cloud, BYOD, mobility and the virtualization of the workplace.

Cable multiservice operators (MSOs) have embraced the need for broadband data, and with good reason. Broadband data demand is expected to grow by 560 percent over the next five years, according to a recent Bell Labs study, largely driven by demand for pay TV and video and cloud traffic generated from the proliferation of data centers.

Cable MSOs are doing well by their entertainment services bundled with residential broadband offers, but this revenue is under siege by the likes over over-the-top (OTT) video services such as Netflix and Apple. Hence, cable MSOs are constantly in search of new revenue opportunities.

One strong candidate for new revenue is commercial services for small and medium-sized business (SMBs). This area generated 10 percent of MSO revenue in 2014, according to Gilbert Marciano, CMO Strategic Marketing - Customer & Market Insight Senior Manager at Alcatel-Lucent, in a recent TechZine posting appropriately titled, Differentiate your SMB services with big data. In fact, it is noted that in the U.S. Comcast and Time Warner Cable together generated roughly $5.5 billion from the segment in 2013.

Today’s technology now allows a single fiber strand to carry up to 17.6 terabits per second of traffic. That’s the equivalent of transmitting 88 Blu-ray discs in a second. This ultra-broadband capability, and the new software-defined networks that service providers are embracing, have important impacts on optical networks further upstream.

“…we need to stay in the light/photonic domain as long as possible in order to reduce the cost associated with repeatedly converting wavelength photonic signals to electrical,” notes Scott Larrigan, senior marketing manager of IPR&T product and solution marketing at Alcatel-Lucent, in a recent TechZine posting, CDC-F optical networks propel us forward, and in the podcast embedded below.

Have you ever gotten your hands dirty and really implemented an NFV or SDN application? Six teams from academia and industry in Israel and Europe can answer with a resounding yes! These teams gathered in Haifa at the 4-day 2015 Winter School and Hackathon event, organized by Bell Labs, Alcatel-Lucent’s CloudBand team and Israel’s leading Institute of Technology, Technion. The event offered a full program to get acquainted with the fundamental concepts behind cloud computing, software defined networking (SDN) and network functions virtualization (NFV).

One of the things that will characterize 2015 is the trend that started picking up momentum in 2014 that operators of physical communications networks have developed a sense of urgency about transforming their networks. It used to be that if you were a network operator you could invest with some level of assurance that the hardware and the associated software to run it would be core to your network for possible decades before becoming obsolete. However, as everyone in the industry knows, this is no longer the case.

As the world becomes more software-centric in terms of service creation, delivery, agility, security and performance— to meet the tsunami of data heading operator’s way and to allow network operators to maintain their relevance as ecosystem hubs rather than “dumb pipe” providers—cost efficient and effective operational excellence and the need to be fast-to-market and fast in the market with innovative services and enhanced customer experiences have become paramount. It is why so much attention is being paid to thing like Software-Defined Networks (SDN) and Network Functions Virtualization (VFV).

The need for speed has become (pardon the turn of phrase) hyper-critical. However, with recognition of the need to transform and do so rapidly should also come the recognition that network operators cannot transform rapidly and successfully on their own...

Their networks, which traditionally have been based on turnkey network elements running software on purpose-built hardware, are moving to a software-centric model. In this model the true value lies in the software, while the hardware is typically of the commercial-off-the-shelf variety.

Network Functions Virtualization (NFV) is the name of this new architecture, which not only embraces the model of instituting network functionality in software and running it on industry-servers, but also allows applications and services to leverage those resources whenever and wherever they are.

The dynamics of this global change are fairly well known, although how to address the challenges isn’t so obvious. For example, cities consume three quarters of energy and contribute 80 percent of CO2 emissions globally, according to a recent report in The Guardian. How can that energy be most effciently delivered, with minimal environmental impact?

Consensus is emerging that what’s needed are smarter, safer, greener cities. Governments and municipalities are under pressure to invest in sustainable infrastructure capable of efficiently delivering services to citizens and workers.

There’s a pretty compelling smart grid transformation opportunity for public-private partnerships embedded in this evolution. Together, telecom service providers and information and communication technology (ICT) providers can bring in their assets, expertise and experience to help power utilities meet goals for smart grid applications.

It feels like it was just a few months ago when you could read articles in the trade press lumping together SDN and NFV with NFV being a form of SDN or vice versa. Yes, both somehow are about virtualization and about converting hardware into software. Today – after numerous proofs-of-concept run by service provides around the globe – we know the role of SDN as virtually indispensable for NFV solutions that aspire to deliver the kind of agility and operational simplification we all expect from NFV. Only SDN can deliver quickly enough the (virtual) networks needed for newly deployed network functions. Alcatel-Lucent has recently demonstrated a complete virtual evolved packet core (vEPC) including a virtual IMS/VoLTE deployed in less than 30 minutes.